Correlation Between Intelligent Protection and Axcelis Technologies

Can any of the company-specific risk be diversified away by investing in both Intelligent Protection and Axcelis Technologies at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Intelligent Protection and Axcelis Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Intelligent Protection Management and Axcelis Technologies, you can compare the effects of market volatilities on Intelligent Protection and Axcelis Technologies and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Intelligent Protection with a short position of Axcelis Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intelligent Protection and Axcelis Technologies.

Diversification Opportunities for Intelligent Protection and Axcelis Technologies

-0.15

Correlation Coefficient

Intelligent Protection  Axcelis Technologies

Good diversification

The 3 months correlation between Intelligent and Axcelis is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Intelligent Protection Managem and Axcelis Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axcelis Technologies and Intelligent Protection is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Intelligent Protection Management are associated (or correlated) with Axcelis Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axcelis Technologies has no effect on the direction of Intelligent Protection i.e., Intelligent Protection and Axcelis Technologies go up and down completely randomly.

Pair Corralation between Intelligent Protection and Axcelis Technologies

Considering the 90-day investment horizon Intelligent Protection is expected to generate 4.4 times less return on investment than Axcelis Technologies. In addition to that, Intelligent Protection is 1.26 times more volatile than Axcelis Technologies. It trades about 0.03 of its total potential returns per unit of risk. Axcelis Technologies is currently generating about 0.14 per unit of volatility. If you would invest  6,275  in Axcelis Technologies on May 14, 2025 and sell it today you would earn a total of  1,801  from holding Axcelis Technologies or generate 28.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Intelligent Protection Managem  vs.  Axcelis Technologies

Intelligent Protection

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Intelligent Protection Management are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile basic indicators, Intelligent Protection may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Axcelis Technologies

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Axcelis Technologies are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain essential indicators, Axcelis Technologies unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intelligent Protection and Axcelis Technologies

The main advantage of trading using opposite Intelligent Protection and Axcelis Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intelligent Protection position performs unexpectedly, Axcelis Technologies can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Axcelis Technologies will offset losses from the drop in Axcelis Technologies' long position.

The idea behind Intelligent Protection Management and Axcelis Technologies pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Check out your portfolio center.

Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.